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The most influential country in the world

   

Added on  2020-04-21

13 Pages2119 Words205 Views
Running head: MANAGERIAL ECONOMICS Managerial Economics Name of the Student Name of the University Author Note

1MANAGERIAL ECONOMICS Table of ContentsIntroduction......................................................................................................................................2The medical cost in USA over the years.........................................................................................2Causes behind the problem of increasing medical costs in the USA..............................................7Economic Interpretation of the problem..........................................................................................7Legislative Suggestions...................................................................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................11

2MANAGERIAL ECONOMICS Introduction In the global scenario, the most influential country in the world has been and still is theUnited States of America. The country has been showing consistent growth in every aspect ofeconomy as well as in social and overall welfare aspects. The residents of the country enjoys ahigher standard level of living than many of the countries in the global scenario and the policyframeworks of the country make provisions for scope of continuous monitoring of the efficientperformance of the country in the welfare parameters like health, education, life expectancy,employment and others. However, in spite of being a sustainable and powerful country, the USAdoes face several issues in overall framework, which in the current period of time have becomeprimary issues of concern among the governing authorities. One of such issues is the constantlyincreasing costs of medical and health care in the country in general, which is affecting a majorshare of the population adversely. The report tries to take into account this ongoing issue ofconcern in the country and it tries to interpret the causes behind the same from an economicpoint of view. The report also tries to suggest several legislative measures, which can beundertaken in this aspect by the government of the country. The medical cost in USA over the years The medical sector of the country is one of the largest industries in the USA with the totalhealth care costs amounting to almost 3.2 trillion USD. The industry contributes around 18 percent of the total Gross Domestic Product of the country, in 2016. However, the industryamounted to only 5 per cent of the GDP of the country in 1960 and the total health care costsamounted to only 27.2 billion USD at that point of time. This shows that the cost of medical carein the industry has considerably increased within a few decades (Iuga & McGuire, 2014).

3MANAGERIAL ECONOMICS Figure 1: Changes in the medical costs in the USA over the years(Source: Forbes.com, 2017)As can be seen from the above figure, the medical costs in the country has been showinga consistently increasing trend from 1960 to 2012 and is still increasing even though theeconomy and the political scenario of the country have experienced substantial changes over theyears. The periods of recession, boom or any other substantial economic and non-economicphenomena did not affect the trends in the increase in the health care costs in the country, as canbe seen from the continually increasing percentage of the same in the GDP of the country(Berwick, Nolan & Whittington, 2017).

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